Anysphere Raises $900M at $9.9B Valuation Surpassing $500M ARR

Anysphere, the innovative startup behind the AI coding assistant Cursor, has just closed a massive funding round of $900 million, catapulting its valuation to an impressive $9.9 billion. This marks the company's third fundraising event in less than a year, underscoring its rapid growth and investor confidence. The round was led by returning investor Thrive Capital, with major participation from Andreessen Horowitz, Accel, and DST Global.

Since its inception just three years ago, Anysphere has quickly established itself as a leader in the AI coding assistant space, often dubbed 'vibe coders.' Cursor, its flagship product, has become one of the most popular AI tools for developers, driving the company’s annual recurring revenue (ARR) to soar past $500 million. Remarkably, the ARR has been doubling approximately every two months, a testament to the product’s strong market fit and growing demand.

Cursor offers a tiered pricing model designed to accommodate a range of users. After a two-week free trial, individual developers can subscribe to a $20 monthly pro plan or opt for a $40 business subscription. While individual subscriptions have historically driven the majority of revenue, Anysphere has recently introduced enterprise licenses, enabling companies to purchase Cursor for their teams at premium pricing. This strategic expansion into enterprise markets is fueling further growth.

Interestingly, earlier this year, Anysphere received acquisition offers from major players including OpenAI, the maker of ChatGPT, but chose to remain independent. This decision highlights the company's confidence in its trajectory and the robust demand for AI coding assistants as standalone solutions.

Why Anysphere’s Growth Matters

The explosive growth of Anysphere and its AI coding assistant Cursor signals a broader shift in software development. AI-powered tools are rapidly becoming essential for developers seeking to boost productivity and reduce coding errors. The fact that Anysphere’s ARR has doubled every two months is almost unheard of in the SaaS world, reflecting how quickly AI adoption is accelerating.

Moreover, the move to enterprise licensing opens new revenue streams and cements Cursor’s position as a critical tool for teams, not just individual developers. As companies increasingly embrace AI to streamline workflows, tools like Cursor will be at the forefront of this transformation.

In summary, Anysphere’s latest funding round and soaring ARR underscore the immense potential of AI coding assistants. For developers and enterprises alike, this technology is not just a trend but a fundamental shift in how software is built.